Study of dividend policy and stock prices in the capital market has attracted considerable interest in corporate finance literature. Theoretical postulates and empirical evidence from country specific and cross-country studies are divided across lines, as some support the existence of a positive significant implication while others submit entirely negative and non-significant implication on the studied topic. Thus, this paper examines Nigerian context of dividend policy impact on market value of quoted commercial banks with study range of 2004-2018. The study is hinged on the theoretical postulates of dividend relevance theory and Efficient Market Hypothesis (EMH). The study employed model stability test and Error Correction Model (ECM) after determining the stationarity status of the time series data employed in the study, using ADF test, while Johansen Co-integration test was used to predict the existence of two long-run co-integrating relationships among variables. The empirical result reveals a significant dividend policy impact on market value of quoted commercial banks in Nigeria. The study therefore, recommends that Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and the established Financial Regulatory council (FRC) to step up regulatory oversight functions to ensure transparency, business ethics and good corporate governance in the banking industry particularly quoted commercial banks in Nigeria, as this will help curtail the anxiety of investors and relatively reduce the practices of declaration of huge paper profits, insider trading, manipulation of stock prices and other nefarious acts.